Nevada Non-Compete Agreement Template

Yes, a non-compete in Nevada is legally enforceable if it meets the following conditions:^[1]

• Consideration. Must be supported by valuable consideration (such as an employment contract, promotion, compensation, etc.);
• Restraint. Cannot impose any restraint that is “greater than required for the protection of the employer;”
• No undue hardship. Cannot impose an undue hardship on the employee; and
• Appropriate restrictions. Imposes restrictions that are appropriate for the consideration being offered.

Effective October 1, 2021, hourly workers (exclusive of any tips or gratuities) are strictly exempt from entering into a non-compete agreement.^[2]

Attorneys are not allowed to enter into a non-compete that restricts their ability to practice law in the State.^[3]

The duration and geographical area are judged collectively whether it is reasonable or not. Therefore, if the time period is longer, the geographical area must be smaller, and vice-versa.

• In Ellis v. McDaniel (1979), a duration of 2 years and an area of 5 miles was reasonable.
• In Hansen v. Edwards (1967), a duration of 1 year for the City of Reno was reasonable.

• In Camco, Inc. v. Baker (1997), a duration of 2 years and 50 miles was unreasonable.
• In Jones v. Deeter (1996), a duration of 5 years and 100 miles was unreasonable.

“Noncompetition covenant” means an agreement between an employer and employee which, upon termination of the employment of the employee, prohibits the employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the employer.^[6]